When you begin shopping for a new Naples, FL home it is important that you get pre-approved for a mortgage. The loan officer may use two different terms when discussing this with you - pre-qualification and pre-approval – these are not the same thing.
Pre-qualified means that according to your credit history, the amount of outstanding debt you have and your present income and assets you should be able to repay a mortgage of a certain amount. This is a quick and easy way to check the home price range you should consider. But it is not considered a PRE-APPROVAL.
When you get pre-approved it means that the loan officer has had an in depth search completed and that you are approved for a specific amount. This depends upon the home you are buying meeting certain standards as to its value – and – of course that your circumstances don’t change. When your real estate agent sees that you are pre-approved he/she will know what homes to show you and realize that you are serious about buying a new home. Furthermore, the seller will consider you a “cash buyer” and give your offer more favorable consideration. If a seller receives more that one offer and one offer is pre-approved and the others are not, sellers generally chooses the pre-approved offer, even if it is for less money, because the know there is no waiting, for possibly months, to get a loan approval. When you are in a hot buyers market and need to act fast the competing buyer with a pre-approval in hand will win.
Becoming pre-approved is generall a quick andeasy process. Just be sure to take all of your documentation with you
It is worth remembering that when it come time to obtain the loan - you are under no obligation to use that lender for the loan.